National Bank Financial has revised its 2004 corporate earnings outlook, making it significantly higher than announced at the start of the year.

NBF reports that the latest bottom-up estimates compiled by First Call predict earnings growth of 16.8% on the S&P 500 for 2004. “That is a very significant upward revision from the 12.8% projection at the end of last year,” NBF says.

Seven of the 10 main sectors have experienced upward revisions. The most dramatic revision occurred in energy, with projections up to 6%, from initial calls for minus15%. “This sector is likely to experience further revisions in the months ahead as the consensus of industry analysts is still for a $30/barrel oil price for the balance of the year,” the firm says.

On the other hand, telecommunication services have suffered the biggest downward revision to earnings, with a 13% drop in profits expected this year, revised from minus 2%.

Financial stocks are expected to see 16% growth, up from initial estimates of 11%. Techs are calling for 41% gains, up from 33%. Materials are now expected to enjoy a 67% increase, up from 49% at the start of the year.